Expert: Prices for residential real estate will go up in next 5 years

Baku. 27 November. REPORT.AZ/ The demand for residential real estate of economy class will increase in next 5 years. It is influenced by a number of factors.

Report was informed by the managing partner of the audit firm KPMG Azerbaijan Vugar Aliyev.

According to him, this prediction is not only the conjuncture of the market, but at the same time it is prepared by comparing state of markets in other CIS countries.

"Everything will depend on the cost of construction. Today, the construction cost is very high, even one of the highest in the CIS. There are several reasons for this. Therefore, the prices vary depending on the cost. According to our forecasts, in the near 3 years the cost of construction will fall. We hope that economic openness, transparency, and also production construction materials in the country will boost this process", said Aliyev.

At present, the residential real estate of economy class share is of 60%,Economy + - 30%" premium + is 10%.